Seeking Alpha

HudBay Minerals extends takeover offer for Augusta Resource to May 27

  • HudBay Minerals (HBM) says it is extending its offer to acquire all outstanding shares of Augusta Resource (AZC) to May 27; the hostile offer had been set to expire today.
  • HBM, which owns a ~16% stake in AZC, has offered 0.315 of a HBM share for each AZC share, currently valuing the company at ~$458M, or $3.15/share.
Comments (3)
  • zolt4444
    , contributor
    Comments (2) | Send Message
    offering 3.15 share yet the stock is trading at 2.77 share?
    16 May, 06:13 PM Reply Like
  • King Rat
    , contributor
    Comments (724) | Send Message
    It trades ~3 on the TSE, so a 5% discount, but as HBM is $10 now and under $9.50 a week ago, by the time somebody purchased now, had shares settled, tendered their shares, had HBM shares settle, then deal with dilution of HBM from everybody else tendering, then dealing with the tax hassle, that 5% could disappear fast. Been long HBM a while, but it's time to give it a rest and sell.
    17 May, 03:17 PM Reply Like
  • Sumosabe
    , contributor
    Comments (4) | Send Message
    Well, folks need an incentive to sell, don't they?
    16 May, 07:06 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector